On the 4th June 2008 a notification of state aid going to Channel 4 in the United Kingdom (linked to a digital switch over), was published in the Official Journal of the European Union (OJ). By means of the letter dated 2 April 2008 the Commission notified the United Kingdom of its decision to initiate the procedure concerning the proposed financial support to Channel 4 to enable it to meet the costs of digital switchover.

On 10th October 2007, the UK authorities notified to the Commission their decision to grant an aid of 14 million British pounds to Channel 4 to assist it to meet the capital costs of digital switchover. In the notification the UK authorities acknowledged that the notified measure constitutes an aid and invited the Commission “to find that this aid is compatible with the EC Treaty having regard (in particular) to the Commission's Communication on the application of the State aid rules in relation to public service broadcasting.

Channel 4 is a broadcaster incorporated as a public corporation with no shareholders and entrusted with a public service remit. It is the core channel of Channel 4 Corporation (C4C) and is run on a commercial basis only (advertisement revenues being the main source of income). In 2006, the Commission received a complaint by a UK commercial broadcaster which objected to any kind of possible financial assistance towards Channel 4 on the grounds that C4C has ample and sufficient cash reserves to meet the costs of digital switchover without a need for public support.

Channel 4 operates under a licence granted to C4C by Ofcom in common with the other new licences, the Channel 4 licence requires C4C to provide the service in digital form. C4C is run on a commercial basis only and does not receive any State funding. C4C financial results for 2006 showed post-tax profits of GBP 14,5 million on a turnover of GBP 937 million, compared with GBP 48,5 million post-tax profits on a turnover of GBP 894 million in 2005.

Interested parties may submit their comments on the measure in respect of which the Commission is initiating the procedure no later than the 4th of July 2008 to:
European Commission
Directorate-General for Competition
State Aid Registry
SPA 3 6/5
B-1049 Brussels
Fax (32-2) 296 12 42